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February 7, 2013

RBS bankers themselves must pay $610M fine

  • The bank plans to cut 2012 bonuses and claw back previous payouts to cover the penalty for rigging global interest rates.
  • By DANICA KIRKA
    Associated Press

    LONDON — Britain's Royal Bank of Scotland became the third major bank to be caught up in a global probe of interest rate manipulation Wednesday, but what makes the $610 million fine against the lender so remarkable is how it will be paid: by the bankers themselves.

    Because RBS is 80 percent owned by the British government, which bailed it out during the 2008 financial crisis, the bank plans to cut 2012 bonuses and claw back previous payouts not only from the 21 staffers implicated in the fraud but their managers and current members of the departments caught up in the scandal. To take money from the corporation would, in effect, amount to making British citizens pay for the bank's role in the scandal.


     
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